Over the past year, output grew 4%, capital grew 2%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did productivity grow?

If government spending rises but the central bank changes the money supply to prevent income from changing, then

a. both consumption and investment will remain unchanged. b. consumption rises and investment falls. c. investment falls but consumption rises. d. both consumption and investment rises.

Which of the following will tend to result in the least variation in the expected real rate of return from the ownership of stocks?

a. ownership of a single stock for a short period of time b. ownership of a single stock over a lengthy period of time c. ownership of stocks from a specific sector (for example, the automobile industry) over a lengthy period of time d. ownership of a diverse set of stocks (the Standard & Poor's 500, for example) over a lengthy period of time